Behrman Capital backs experienced management teams in the purchase of
businesses they operate. These opportunities arise from either the spinoff
of a division from a parent company or the recapitalization of a closely
held business where the transaction is driven by a desire for growth
capital, estate planning, liquidity or other reasons. These transactions
differ significantly from traditional leveraged buyouts in that growth, not
financial leverage, creates the bulk of returns for management and
investors. Rather than relying on selling assets or financially
restructuring the business to create value, we focus on building value
through growth.
For example, we completed a recapitalization of The Management Network
Group, Inc. (“TMNG”), a leading global telecommunications and technology
consulting firm, at a time when it was organized as a virtual corporation.
After assisting management with numerous strategic and tactical decisions,
including the establishment of a corporate infrastructure necessary to allow
it to continue its rapid growth of 50 percent per annum, TMNG successfully
completed both an initial public offering and a secondary offering.
ILC Industries, Inc., on the other
hand, is a leading supplier of defense electronics, advanced microelectronic
components and engineered materials to the defense, homeland security,
commercial aerospace, space and industrial markets. Together with management
we completed a recapitalization of the company in a transaction valued at
$192.5 million. |
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Data Device Corporation, a division of ILC Industries,
Inc. is committed to being a leading supplier of data conversion and data
interface cards and components for military applications.
Through its strong market positioning,
including its significant base of sole-supplier contracts, ILC has managed
to penetrate new markets and applications which in turn has led to sustained
revenue and cash flow growth over the last several years.
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